What is the maximum payment a person may receive from the recovery fund for claims arising out of a single transaction in TX?

The Louisiana Real Estate Recovery Fund was established for the purpose of reimbursing persons adjudged to have suffered monetary damages in the course of a real estate transaction wherein a real estate licensee violated the Louisiana Real Estate License Law. The fund is maintained at a minimum level of four hundred thousand dollars.

Eligibility for the fund is established when a claimant pursuing recovery from a licensee in civil court proceedings has exhausted all avenues of collection from the judgment debtor pursuant to receiving a full judgment in a court of competent jurisdiction. At the time the civil court action is initiated, the claimant must notify the Commission by certified mail and the Commission may intervene in the judicial proceedings.

Payments for claims arising out of the same transaction shall not exceed the aggregate limit of twenty thousand dollars, regardless of the number of claimants or parcels of real estate involved in the transaction. Payments for claims based on a judgment against any one licensee shall not exceed the aggregate limit of fifty thousand dollars.

The Commission may allow an aggrieved party to submit a claim by notarized affidavit when the claim is based on actions of one or more licensees who have been sanctioned by the Commission in an adjudicatory proceeding. if the hearing record corroborates the affidavit submitted by the claimant and the amount of the claim does not exceed two thousand dollars.

Payment from the recovery fund may not be made as reimbursement for any damages other than actual damages suffered by the claimant. Payment from the fund for other costs related to or pursuant to civil proceedings, such as attorney fees, court costs, medical damages and punitive damages, is prohibited.

The right to recover shall be forever barred unless application is made within one hundred eighty days from the date a person established eligibility to recover from the Fund.

Detailed requirements for establishing eligibility to recover from the Recovery Fund are specified in Section 1462 of the Louisiana Real Estate License Law.

FREQUENTLY ASKED QUESTIONS:

Is there a form prescribed for submitting applications for recovery from the Recovery Fund?

No. Applications are to be submitted by letter to the Commission requesting payment from the Fund. Enclose the original or certified copies of all documents filed by or on behalf of the claimant with a court of competent jurisdiction and documents issued by a court or other entity in connection with the effort to recover.

What steps must be taken to institute action to recover from the Recovery Fund?

The Louisiana Real Estate License Law specifically requires claimants to notify the Commission by certified mail at the time action to recover is initiated. This is accomplished by sending a letter to the Commission with a copy of the petition bearing a stamp that indicates the date on which the petition was filed with the court.

Can a licensed real estate broker or salesperson, who acted as a principal in a real estate transaction, submit a claim to the Commission for recovery from the Recovery Fund?

Yes, provided the conditions for establishing eligibility for recovery have been satisfied.

How do I contact the Recovery Fund?

You may email the Recovery Fund at .

Sec. 156.505. RECOVERY LIMITS. (a) A person entitled to receive payment out of the recovery fund is entitled to receive reimbursement of actual, out-of-pocket damages as provided by this section.

(b) A payment from the recovery fund may be made as provided by Section 156.504 and this section. A payment for claims:

(1) arising out of the same transaction, including interest, is limited in the aggregate to $25,000, regardless of the number of claimants; and

(2) against a single person licensed as a residential mortgage loan originator under Chapter 157 arising out of separate transactions, including interest, is limited in the aggregate to $50,000 until the fund has been reimbursed for all amounts paid.

(c) In the event there are concurrent claims under Subsections (b)(1) and (2) that exceed the amounts available under the recovery fund, the commissioner shall prorate recovery based on the amount of damage suffered by each claimant.

Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 24, eff. September 1, 2009.

Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 42, eff. September 1, 2011.

Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 44, eff. September 1, 2013.

Cite this article: FindLaw.com - Texas Finance Code - FIN § 156.505. Recovery Limits - last updated April 14, 2021 | https://codes.findlaw.com/tx/finance-code/fin-sect-156-505.html

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Cite this article: FindLaw.com - Texas Finance Code - FIN § 156.506. Revocation or Suspension of License for Payment From Recovery Fund - last updated April 14, 2021 | https://codes.findlaw.com/tx/finance-code/fin-sect-156-506/

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